Marketing MA Management and International Business

Marketing MA Management and International Business

Introduction

CRM is a term for methodologists, technologies and e-commerce

capabilities -used by companies to manage customer relationships.

(Foss, 2001:1) It is also called customer management, customer care

and sometimes customer centricity or customer-centric management.

(Brown, 2000:1)

All the names and definitions of CRM have customer, as its core-it is

the management of customer relationships, which attempts to

revolutionize marketing and reshape entire business models.

To survive and grow the business must make a profit. To make a profit

it has to find people who are willing to pay more for its

products/services than they cost. Therefore profit comes from

customers.

All Profit comes from customers

So if no profit=no business

And no customers=no profit

Then no customers=no business

Therefore customers ARE the business

The idea of CRM is not new-it was the way the local shopkeeper treated

his customer-he knew him, knew what was happening in his life, what he

was buying, (one to one marketing?) etc. What is new though is that

nowadays the retailers try to establish dialog with tens of thousands

or even millions of customers in an attempt to understand them better,

their individual needs and maximise the lifetime value of this

relationship. In this respect it is not ‘revolution’ of marketing, but

rather ‘evolution’. The old model of doing business is back into

action but armed with technology and different schemes to reach the

customer and retain them for life.

The four types of CRM programmes, described by Stanley (2000) are

aimed at enabling the company to win back customers, who have defected

or are planning to, (Win Back or Save), to create loyalty among

customers (Retail Loyalty), to up-sell or cross sell services to these

customers (Cross Sell/Up-Sell) and to prospect for new customers (Prospecting)

Retail Loyalty

"Loyalty is a feeling or attitude of devoted attachment and affection;

or the act of binding oneself (intellectually or emotionally) to a

course of action. (http://dictionary.reference.com)

In everyday life loyalty implies emotional commitment to family and

friends, fidelity in marriage. It also suggests monogamy-one choice

above all others. (Humby et.al, 2003:9)

In this sense loyalty is something expected. But when it comes to...

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...ce a Customer, Always a Customer” Dublin: Oak

Tree Press

Foss, B., Stone, M., (2001) “Successful Customer Relationship

Marketing” London: Kogan Page

Gilbert, D., (1999) “Retail Marketing Management” Harlow: FT/Pitman

Humby, C. et al., (2003) “Scoring Points” London: Kogan Page

Oliver R. (1997) “Research” New York: McGraw Hill

Omar, O (1999) “Retail Marketing” London:FT Management

Reichheld, R. (1996) “The Quest for Loyalty” Boston: Harvard Business

School Press

Daley, J (2004)” Is a toaster a fair swap for your loyalty as a

shopper?” The Independent (http://proquest.umi.com)

Davis, H. (2002) “Marketing is all about intellectual use of data”

Loyalty Guide

Jones, K (2002) “Are you exploiting the potential of your customer

base?” Loyalty Guide

http://www.at1.uk.com/Loyalty_Fundamentals.htm

www.bbc.co.uk/cgi-bin/search/results. asda+loyalty+scheme

www.foodanddrinkeurope.com/news/news- -loyalty-cards

http://www.mori.com/polls/2002/blacksun.shtml 2002)

http://money.guardian.co.uk/(Datamonitor report by E.Ripley)

www.mori.com

http://news.bbc.co.uk/1/hi/business/52056.stm

Cross J. (2004) Lecture notes Southampton, University College